China Press Review – July 10, 2020

Press review

Has the coronavirus-hit global economy seen the worst of the crisis? It’s too early to tell
While the stock market and business surveys point to a rebound, the improvement in economic data is rooted in the steep contractions in output earlier this year     Markets seems to be conflating the stronger-than-expected rebound with a smooth recovery

US has real chance to bring manufacturing home from China
New cost calculus and COVID-19 offer opening if investment in competitiveness raised

US regulator says oversight of Chinese companies remains futile as authorities refuse American ‘principles and practice’
Discussions are unlikely to be productive unless ‘Chinese authorities are willing to embrace certain principles,’ says US regulator  US markets have increased exposure to companies with significant operations in China and passive American investors are bearing the brunt of the risks

Coronavirus, US-China trade war see 95 per cent of American firms wanting to ditch Chinese suppliers
A Qima poll of 200 companies with global supply chains found that 95 per cent of US respondents planned to change to suppliers outside China   Coronavirus, trade war and the US-China rivalry are souring business ties, but firms have been warned that shifting suppliers is easier said than done

U.S. government may finalize ban on federal contractors using equipment from Huawei this week
The Trump administration plans to finalize regulations this week that will bar the U.S. government from buying goods or services from any company that uses products from five Chinese companies including Huawei, Hikvision and Dahua, a U.S. official said  The United States, however, is not the only country with national security concerns about Huawei. On Thursday, for example, Reuters reported that Telecom Italia (TIM) decided to exclude Huawei from its tender for 5G equipment in Italy and Brazil, as the Italian government deliberates whether to bar Huawei’s tech from the country’s 5G network. Huawei told Reuters that “the security and development of digital Italy should be based on an approach grounded in facts and not baseless allegations.” The United Kingdom is also reportedly considering a similar ban on Huawei in its 5G network.

US government’s Huawei ban moving too fast, contractors say
Trade groups say that companies, still reeling from the economic effects of the coronavirus pandemic, need more time to comply with a ban on Chinese tech.   With the Trump administration poised to impose a government-wide ban on contractors using Huawei and other Chinese-made telecommunications equipment, trade groups say that companies, still reeling from the economic effects of the coronavirus pandemic, should get more time.

Deutsche Telekom explains its multi-vendor strategy
Deutsche Telekom said that the company continues to be committed to a multi-vendor strategy for the deployment of its mobile networks.    In a company blog post, the German carrier said that this strategy allows it to buy gear from a large number of different manufacturers so the company does not become dependent on individual manufacturers. The telco said that some of its providers include Cisco, Juniper, Nokia, Ericsson and Huawei, as well as other smaller providers.

Huawei reassures UK over impact of US sanctions
United States sanctions will not have an immediate impact on Huawei’s operations in the United Kingdom, a top executive from the Chinese telecommunications company has said.

Telecom Italia excludes Huawei, Samsung, ZTE from 5G network tender
Telecom Italia (TIM) has excluded Huawei Technologies from a tender for 5G equipment for building the core network in Italy and Brasil, Reuters reported.

Make The Right Choice!
As I write, finally, cautiously, but steadily, things are beginning to return to a version of normal across Europe. For many of us, it’s like we are waking from a dream, or, maybe more accurately, some kind of nightmare.   Abraham Liu is the Huawei Chief Representative to the EU Institutions.

China loans hits record US$1.73 trillion in first half of 2020 after strong June as coronavirus recovery continues
The central bank is still likely to keep interest rates close to record lows and it will probably continue to lean on quantitative tools to shore up lending   Banks extended a record 12.09 trillion yuan (US$1.73 trillion) of new loans in the first half of 2020, beating a previous peak of 9.67 trillion yuan in the first half of 2019    Chinese banks extended 1.81 trillion yuan (US$258 billion) in new yuan loans in June, up from 1.48 trillion yuan in May

Data privacy concerns weigh heavily on China’s AI leadership ambitions amid US trade sanctions
China’s widely held advantage in AI is the huge amount of data generated by its more than 900 million internet users, the world’s biggest online population   The country’s top lawmaking body has started reviewing a draft data security legislation that aims to protect individual privacy, while also promoting the relevant use of data

Alibaba Group Announces Filing of Annual Report on Form 20-F for Fiscal Year 2020
Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988) today announced that it filed its annual report on Form 20-F for the fiscal year ended March 31, 2020. The annual report can be accessed under the SEC Filing section on the Company’s investor relations website

Alibaba touts ‘unstoppable’ digitization as growth engine
Alibaba chairman Daniel Zhang set out a series of new goals for the e-commerce giant in a new era where “digitization is the new norm” in the company’s annual report released Friday. Spurred by the Covid-19 pandemic, China’s ongoing digital transformation is attracting attention from the state as well as the country’s biggest tech companies looking to build high-tech infrastructure for cloud computing, supply chains, 5G networks, electric vehicles, digital finance, and more.

E-commerce giant Alibaba sets five-year goal of serving over a billion customers in China
Company also aims to serve two billion customers globally, create 100 million jobs and help 10 million small businesses on its platform become profitable    Alibaba’s net income rose 75 per cent from a year earlier to 140 billion yuan, while revenue rose 35 per cent in last financial yea

China’s patent filings back on track amid Covid-19 disruptions
More than 683,000 patent applications were filed in China the past six months, despite a drastic slowdown in February at the height of the coronavirus outbreak    Telecommunications giant Huawei was awarded the most number of patents in the first half of this year, followed by smartphone rival Oppo and display maker BOE

Luxury brands turn from Hong Kong to mainland Chinese consumers still eager to shop
Despite the economic shock of the coronavirus, analysts say China’s demand for luxury goods hasn’t waned much – and it’s drawing top brands from Hong Kong to the mainland. Combined with the impact of last year’s violent protests in Hong Kong and this year’s restrictions on cross-border travel, many luxury brands are closing stores in the Chinese territory.    “A lot of travelers to Hong Kong are from lower-tier cities (who) don’t have access to luxury stores in their hometowns,” Imke Wouters, partner of retail and consumer goods practice at Oliver Wyman, said in a phone interview. “Livestreaming is a way to reach them. Online is another way to reach them.

China chip expert warns that self-reliance in semiconductors will be tough, needs stable investment
Comments come as China seeks to build greater self-reliance in core technologies, such as semiconductors and artificial intelligence, amid increasing US pressure

Coronavirus: Beijing’s economic recovery from June outbreak offers hope ahead of China GDP release
Outbreak at the Xinfadi wholesale food market sprang up in Beijing in June, but shops, bars and restaurants have since largely reopened     China is set to announce its second quarter gross domestic product growth rate on Thursday, with many economists predicting a sharp rebound

Frozen shrimp packaging found positive for coronavirus but risk from food remains low, says China authority
Chinese customs suspends imports from three companies and urges Ecuador to step up food safety standards    Food safety deputy director says the likelihood of being infected with Covid-19 via food remains very small but consumers must be vigilant

Coronavirus: How New Zealand went ‘hard and early’ to beat Covid-19
New Zealand’s isolated location and relatively low population density certainly helped its efforts, but Prof Baker says that was only a minor benefit.  “This strategy could work anywhere that has functioning government and infrastructure,” he said, citing diverse examples like Vietnam, Taiwan and China. “The countries I’m more perplexed about are the UK, as well as Europe and North America. We normally look to them for our leadership in public health,” he says.   Instead it has largely been countries in Asia – noticeably Taiwan, he says, which has had astonishing success – that have provided the best guidance.   He says it is “a bit of a puzzle for us at a distance to understand why” with the UK’s extensive scientific expertise and health care, “you haven’t looked at the evidence and worked out a pattern like New Zealand’s”.   The UK government has previously defended its coronavirus strategy, saying its approach was “being guided by the science”.

Tesla ramps up China hiring in bid for ‘full vehicle autonomy’ by year-end
US electric carmaker Tesla is expanding its Chinese engineering team to accelerate the launch of self-driving features in the country as it pursues “full vehicle autonomy” by the end of this year, CEO Elon Musk said on Thursday.

Digging in on rare earth, the next front in the US supply chain war with China
US scrambling to close the gap with China, which dominates the mining and refining of these essential materials for hi-tech military and consumer products     The drive to develop in US taps Donald Trump’s themes of reviving extractive industries and ‘reshoring’ American jobs

China state media warning spooks markets
China state media warns of ‘mad cow’ market; Credit expansion in China reflects economic rebound; BOJ, ECB meetings awaited next week

China stock euphoria lifts IPO to record 924% first-day gain
The frenzied trading comes as stock volume and prices have been rising quickly in China.  A Chinese initial public offering soared tenfold on its trading debut on Thursday (July 9), the latest sign of euphoria in the nation’s US$9.3 trillion (S$12.9 trillion) stock market. QuantumCTek Co., which develops information security products, closed 924 per cent above its 36.18 yuan (S$7.20) issue price on China’s Star board. That exceeded the previous record of a 614 per cent first-day jump, posted just on Tuesday by Tinavi Medical Technologies Co. On Wednesday, Geovis Technology Co. climbed 438 per cent in its debut

Hong Kong stocks slide but post second straight weekly gain, as coronavirus weighs on sentiment
Hong Kong sees seven IPOs – two skyrocket 150 per cent   China stocks decline, but post big 7.3 per cent weekly gain

Hong Kong’s exchange sees one of its busiest days ever, with seven stocks trading for the first time; two shot up 150 per cent
24 companies will list in Hong Kong this month    Hong Kong is trying to retain its crown as the world’s top IPO market

In China, FOMO is swelling the ranks of retail investors chasing the next big winners amid world-beating stock rally
Growth in new stock account openings at major brokerages exceeded 30 per cent in June from a month earlier, according to media reports     Morgan Stanley says that the stock run-up has more legs, as proprietary sentiment index is still far from a level that signals trend reversal

EU, Canada and China discuss climate cooperation, sustainable economic recovery
Against the backdrop of the Coronavirus pandemic, MoCA focuses on aligning global recovery measures with the Paris Agreement, and improving resilience against future crises.

Kazakhstan health ministry rejects Chinese claim of ‘unknown, deadlier pneumonia’
Ministry says Chinese embassy misunderstood official count, which includes unspecified cases
WHO says it is only aware of new coronavirus circulating in the Central Asian nation

health code, Covid-19, digital quarantine
We read the technical standards for China’s ‘health code.’ Here’s what we learned. Standards documents reveal details about how QR code systems track citizens’ health

City should stand as one in face of third coronavirus wave
Hong Kong may have tightened anti-infection measures following dozens of new cases in the past few days, but it also needs to remain united and determined

Covid-19 and now floods: Wuhan, first epicentre of the pandemic, braces again
Having weathered one major storm in 2020, in the form of an unprecedented health crisis, the central Chinese city faces another    Local residents and officials batten down the hatches as heavy rainfall swells the Yangtze River

China cancels all international sports events for the year
China says it will not stage any international sports for the rest of the year, apart from trials for the 2022 Winter Olympic Games in Beijing and the neighboring city of Zhangjiakou.

After border clash with India, has China made a strategic miscalculation?
China seems to have decided it can bear the cost of its territorial assertion at the disputed border and has warned India against strategic miscalculation    However, the current gain might cloud the big picture for Beijing in the long term

A Nationalist’s Guide to Stepping Back From the Brink
Indian Prime Minister Narendra Modi demonstrates how to de-escalate a conflict while also saving face   Modi’s efforts to downplay tensions with China without undermining his own strongman image have been so successful, in part, Singh said, because of the fact that Beijing isn’t India’s traditional foreign adversary, a role occupied by Pakistan. It also helps that, despite growing resentment toward Beijing, Indians are far less familiar with China than they are with Pakistan. “It’s difficult to whip up nationalist fervor because the memories of the ’62 war, except for the generation that lived through it, is kind of a fading memory,” Ganguly said. “It doesn’t have the same visceral quality … as, say, the relationship with Pakistan … There are limits to how you can play that with China, and Modi, I think, is more than well aware of it.”    But perhaps the greatest driver of Modi’s actions is that for all his strongman bravado, he is well aware of India’s limits, as well as his own. Recasting the narrative or imposing anodyne retaliatory measures allows him to subtly acknowledge those limitations without losing face. “Modi is astute enough to realize that if he fuels a nationalist fervor,” Ganguly said, “he may become trapped by his own rhetoric.”

China’s top law enforcement body unveils campaign to purge ‘corrupt elements’
It aims to ‘scrape the poison off the bones of political and legal systems’, according to Central Political and Legal Affairs Commission chief   Legal expert says corruption poses existential threat to legitimacy of the Communist Party and it could be a move to strengthen its rule

Sweden’s Ex-Ambassador to China Is Cleared of Wrongdoing
Anna Lindstedt was found not guilty of overstepping the boundaries of her role when she arranged secret meetings over the fate of a Hong Kong bookseller and Swedish citizen who remains detained in China.

Beijing blasts US over ‘provocative military acts’ in the South China Sea
Defence ministry claims United States ‘carried out navigational hegemony’ by repeatedly sending warships to the region US aircraft carrier groups conducted drills in the area last week while Chinese navy held its own exercises near contested Paracel Islands

Alain Gillard
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